Rim Managing Explosive Growth Case Analysis
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Research In Motion: Managing Explosive Growth
Case Facts
Research In Motion Ltd. (RIM) * RIM was a world leader in the mobile communications market. RIM designed, manufactured, and marketed the very popular line of BlackBerry products that had recently reached 14 million subscribers worldwide and had just over $6 billion in revenue. * RIM generated revenue through the “complete BlackBerry wireless solution,” which included wireless device, software, and services. Revenues were heavily skewed to handheld sales (73%), followed by service (18%), software (6%) and other revenues (3%). * Just six months after launching Facebook for BlackBerry, downloads of the popular social networking software application had topped one million, indicating that younger consumers were gravitating toward the popular handhelds. * RIM had over 270 carrier partnerships in more than 110 countries around the world. Therefore, expanding the global reach of BlackBerry solutions was a fundamental part of RIM’s strategy. * In 2007, 57.9% of RIM’s revenues were derived from the U.S., 7.3% from Canada and the remaining 34.8% from other countries.
The Wireless Communications Market and Smartphones * A shift in the telecommunication industry was moving demand beyond just cellphones to smartphones. * In 2007, key competitors to RIM’s BlackBerry lineup included the Palm Treo 700 and 750, Sony Ericsson P900 series, the Nokia E62, Motorola Q, and the Apple iPhone. * The number of wireless subscriber connections worldwide had reached 3 billion by the end of 2007. Chine led with over 524 million subscribers, followed by the United States at 254 million, and India with 237 million. * Worldwide demand for wireless handhelds had been fueled by several global trends. Coupled with the growth of IM as both a business and personal communications tool, the demand for wireless handhelds and smartphones was robust.
Research In Motion: Managing Explosive Growth
Case Facts
Research In Motion Ltd. (RIM) * RIM was a world leader in the mobile communications market. RIM designed, manufactured, and marketed the very popular line of BlackBerry products that had recently reached 14 million subscribers worldwide and had just over $6 billion in revenue. * RIM generated revenue through the “complete BlackBerry wireless solution,” which included wireless device, software, and services. Revenues were heavily skewed to handheld sales (73%), followed by service (18%), software (6%) and other revenues (3%). * Just six months after launching Facebook for BlackBerry, downloads of the popular social networking software application had topped one million, indicating that younger consumers were gravitating toward the popular handhelds. * RIM had over 270 carrier partnerships in more than 110 countries around the world. Therefore, expanding the global reach of BlackBerry solutions was a fundamental part of RIM’s strategy. * In 2007, 57.9% of RIM’s revenues were derived from the U.S., 7.3% from Canada and the remaining 34.8% from other countries.
The Wireless Communications Market and Smartphones * A shift in the telecommunication industry was moving demand beyond just cellphones to smartphones. * In 2007, key competitors to RIM’s BlackBerry lineup included the Palm Treo 700 and 750, Sony Ericsson P900 series, the Nokia E62, Motorola Q, and the Apple iPhone. * The number of wireless subscriber connections worldwide had reached 3 billion by the end of 2007. Chine led with over 524 million subscribers, followed by the United States at 254 million, and India with 237 million. * Worldwide demand for wireless handhelds had been fueled by several global trends. Coupled with the growth of IM as both a business and personal communications tool, the demand for wireless handhelds and smartphones was robust.